Shares in low-cost short-haul airlines and holiday companies fell by up to 3% on 10 May as investors reacted to the reopening of international travel from 17 May.

The Government’s traffic light system didn’t include the popular holiday destinations of France, Greece and Spain under the ‘green list’ category where travellers can visit and return without the need to quarantine.

The share price reaction wasn’t as damaging as some investors might have expected.

Firstly, there is hope that the downward slope of Covid-19 infections and increasing vaccinations in France and Spain will soon lead to them being reclassified as green list countries.

Secondly, airlines and travel companies have been quick to increase capacity to Portugal, as demonstrated by Ryanair (RYA) which announced an extra 175,000 seats to Portuguese airports from 17 May.

Passengers to amber list countries will need to self-isolate for 10 days on their return and take PCR tests on day two and day eight and an option to take an additional ‘test to release’ after five days, adding significant costs for families.

The Government has also warned of increased delays at airports amid the closure of electronic passport gates. This allows Border Force offices to manually check incoming passengers entering the country which can take up to 10 minutes instead of 30 seconds for the automated system.

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